Budgeting for a commercial construction project in Texas means understanding where every dollar goes and how each decision affects long-term performance. A successful project should meet cost goals at completion and continue performing efficiently for decades.

This guide outlines the major cost factors that shape commercial construction budgets across Texas and how NC Sturgeon’s approach to planning and value engineering delivers both cost control and long-term quality.

Understand Construction Cost Per Square Foot in Texas

Across Texas commercial construction cost per square foot varies depending on project type, materials, and regional labor rates.

Average cost ranges:
• Basic retail or warehouse shell: $85 to $130 per square foot
• Office or medical buildings: $160 to $250 per square foot
• High-end or specialized facilities: $250 per square foot and higher

These ranges can shift with market conditions and material pricing. Working with a qualified design-build contractor like NC Sturgeon early in planning helps establish realistic expectations and avoid budget surprises later in the process.

The Commercial Construction Budgeting Process

A detailed budget evolves through several stages as the project develops:

• Preliminary Budget: Based on square-foot averages and historical benchmarks during early concept planning.
• Design Development Budget: Refined using input from engineers and subcontractors as drawings progress.
• Construction Budget: Finalized after permitting and bid review, with confirmed materials and subcontractor pricing.

NC Sturgeon manages these stages within a single design-build process. This integration allows real-time cost feedback and eliminates the disconnect that often happens when designers and contractors work separately.

Plan for Hard Costs vs Soft Costs

Every construction budget is divided into two major categories: hard costs and soft costs. Understanding both ensures accurate and complete planning.

Hard Costs (Direct Construction Expenses)

These are the physical costs of building the project, including:

• Sitework and excavation
• Concrete, steel, and framing
• Roofing and exterior finishes
• MEP systems (mechanical, electrical, plumbing)
• Interior build-out and finishes

Soft Costs (Professional and Administrative Fees)

Soft costs include indirect expenses that support the construction process but are not part of physical labor or materials. In many projects, they can represent 15 to 25 percent of total cost.

With NC Sturgeon’s integrated design-build approach, many of these services are handled in-house, which reduces duplication and keeps teams aligned.
Typical soft costs include:

• Architectural and engineering services
• Permitting and inspection fees
• Legal, insurance, and financing costs
• Marketing and leasing expenses for developers

NC Sturgeon’s in-house preconstruction and engineering coordination help clients manage these costs efficiently while maintaining alignment between design and execution.

Include Contingency Planning in Every Budget

Even with strong preconstruction planning, unforeseen conditions can affect cost and schedule. A contingency fund ensures flexibility without interrupting progress.

Typical uses include price fluctuations, scope adjustments, and site conditions that require rework or added engineering. Healthy contingency planning typically ranges from 3 to 5 percent of total project cost, depending on complexity.

Budgeting for Construction: Plan for Long-Term Value

A well-managed budget looks beyond completion, considering how today’s materials and systems will perform for decades.

This is where NC Sturgeon stands apart from other Texas contractors. Many firms promote “value engineering” as cost-cutting, but true value engineering means building quality, not cheaper.

NC Sturgeon’s value engineering approach includes:

• Selecting materials that reduce maintenance and operating costs
• Coordinating design to avoid overbuilt or inefficient systems
• Ensuring proper detailing and quality control to prevent early deterioration
• Designing energy efficiency and long-term performance

Buildings constructed with short-term thinking often require repairs or replacement within a decade. NC Sturgeon’s projects are built to perform for generations.

How NC Sturgeon Helps Clients Build Accurate Budgets

With more than 50 years of experience across West Texas, NC Sturgeon helps developers and owners plan budgets that align with both cost and quality goals. Accomplished through a detailed and proven cost estimating process that ensures accuracy and predictability.

Developers benefit from:

• Transparent preconstruction budgets that evolve with design
• Cost control through accurate cost estimating and strong trade partnerships
• True value engineering that protects building quality
• Integrated design-build delivery that saves time and reduces risk

Whether the project is a warehouse, retail center, or office building, NC Sturgeon delivers accurate budgets and construction quality that last.

Start Budgeting Smarter for Your Next Texas Project

Accurate commercial construction budgeting starts with the right partner. NC Sturgeon’s design-build process gives developers and owners the insight to plan, price, and execute projects with confidence.

Contact NC Sturgeon today to start planning your commercial construction budget.
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